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Case Law Details

Case Name : Chemico Synthetics Limited Vs. Union Of India & Ors. (Delhi High Court)
Appeal Number : W.P.(C) 8422/2017 & CM APPL. 34688/2017 (stay)
Date of Judgement/Order : 27/09/2017
Related Assessment Year :

Chemico Synthetics Limited V/S. Union Of India & Ors. (Delhi High Court) – HC held that an interim relief can be granted to exporters to continue making duty free imports against Advance Authorization (AA) licenses issued to them prior to 1-7-2017 where period of validity of license remains unexpired, however the same shall be subject to certain conditions as prescribed.

Relevant Extract from High Court Order

3. The prayers in these three petitions are more or less similar. It is to allow the Petitioner to make duty free imports against the Advance Authorization (AA) licenses issued to the Petitioner prior to 1st July, 2017 where the period of validity of the licenses remains unexpired.

4. Learned counsel for the Petitioner draws the attention of the Court to the order dated 11th September, 2017 passed by this Court in W.P.(C) 6534/2017 (Narendra Plastic Private Limited v. Union of India) where in the similar circumstances the Court, as an interim measure, permitted the said Petitioner to import the raw material against the AAs issued to it subject to certain conditions.

5. In that view of that matter, as far as these petitions are concerned, the following interim directions are issued.

(i) Each Petitioner will be permitted to clear the consignments of imports constituting inputs for the fulfillment of export orders placed on it prior to 1st July 2017 without any additional levies, and subject to the quantity and value as specified in the AA licenses issued to it prior to 1st July 2017.

(ii) The above clearance would be subject to (a) verification by the Customs Department that it is in conformity with the quantity and value as mentioned in the Advance Authorization license and (b) ensuring that the extent of credit is available vis-a-vis such AA licenses issued prior to 1st July 2017.

(iii) The above interim direction is further subject to the Petitioner furnishing an undertaking by way of an affidavit filed in this Court within one week from today to the effect that in the case of the Petitioner ultimately not succeeding in the writ petition, or failing to fulfill its export obligations, it is liable to pay the entire IGST as was leviable, together with whatever interest as the Court may determine at the time of final disposal of the writ petition.

(iv) The Petitioner will furnish to the Customs Department the entire list of its AAs that are valid as on 1st July, 2017 and a list of the export orders placed on the Petitioner prior to 1st July,

(v) It is made clear that the above interim direction will only apply to those imports which are made by the Petitioner for fulfillment of its export orders placed with it prior to 1st July, 2017 and not to any export order thereafter.

6. Replies be filed within eight weeks. Rejoinders thereto, if any, be filed before the next date of hearing.

7. Today a separate order has been passed by the Court in an application filed in W.P.(C) 6534/2017 issuing further directions. Accordingly, in these petitions as well, the following further directions are issued.

8. Subject to the counsel for the Petitioner furnishing Mr. Narula the complete list of all the imports against the AAs in question, Mr. Narula will communicate to the respective Customs Commissionerates this order forthwith.

9. A copy of this order will be delivered to the CBEC forthwith for further communication by the CBEC to all the Commissionerates with the clear direction that it should be complied with. Mr. Narula adds here that he will also communicate to the CBEC likewise.

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June 2024